Holly, Whose Regular Rate of Pay Is $12, with Time

question 30

Multiple Choice

Holly, whose regular rate of pay is $12, with time and a half for overtime, worked 55 hours last week. Find her gross pay for the week.

• A) $480.00
• B) $750.00
• C) $660.00
• D) $990.00

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Definitions:

Plantwide Overhead Rate

A single overhead absorption rate used throughout a manufacturing facility to allocate overhead costs to products.

Activity-based Costing

A costing method that identifies the activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Overhead Costs

Expenses related to the operation of a business that cannot be directly attributed to a specific product or service, such as rent, utilities, and administration expenses.

Activity Rate

The predetermined overhead rate used in activity-based costing to allocate costs to products or services based on specific activities.